How New Automation and Technologies Are Making Cars More Expensive to Own?
Valerie Raskovic
Jan 14, 2025
The automotive industry is undergoing a significant transformation, driven by advancements in automation and various advanced safety, luxury and infotainment technologies. While these innovations offer unprecedented convenience and safety, they are also making cars more expensive to produce thus making them more expensive to own and service over long term ownership. The issue is that car manufacturers are facing a delicate balancing act: how to deliver and incorporate the advanced features customers want while keeping the vehicles competitively priced and serviceable. To achieve this, many manufacturers have resorted to cost-cutting measures in areas where customers are less likely to notice at least initially.
The True Cost of Advanced Features
Modern cars are equipped with a plethora of advanced features, including autonomous driving systems, sophisticated infotainment systems, and a wide array of safety technologies. These features require expensive components, complex software, and extensive testing to ensure reliability and performance. For example, autonomous driving systems rely on a network of sensors, cameras, and processors, all of which add to the production cost. Similarly, high-end infotainment systems with large touchscreens, advanced navigation, and connectivity options are costly to develop and integrate. In addition, packing the average new car with over 5,000 feet of wires, modules, sensors, switches, fuses and other electrical components adds additional weight contributing the vehicles curb weight, increasing its carbon footprint, MPG and overall handling.
Cost-Cutting Measures
To keep the cars competitively priced, manufacturers have had to resort to some clever cost cutting measures. This often involves cutting corners in areas that are less noticeable by the average consumer. For instance, they might use lower-quality materials for interior components, reduce the thickness of body panels, or simplify less critical systems. Some newer car manufacturers have reduced the amount of seam sealer used on various car panels exposing seams to premature rusting. Many manufacturers have started to replace various parts that were traditionally made from various metal alloys with plastics. For example, the Jeep Grand Cherokee transmission oil pan, which houses the transmission components and holds the transmission oil and is located at the very bottom of the car is now made of plastic, making it more susceptible to punctures during off road driving than traditional metal pans. In fact, this has become such an issue for Jeep off-road enthusiasts that they have opted to install a full-body skid plate or turn to the aftermarket for transmission pans made of metal to ensure peace of mind. Granted, most consumers will never need to worry about this issue, as the majority of Grand Cherokees sold are not actively taken off-road. However, for those who do use their Jeeps off-road, they now face a new set of challenges. Overall, the use of plastics is not all bad, in many cases replacing components made traditionally of metal to various advanced plastic polymers is an improvement as it can save weight, improve performance and remain prone to oxidation. However, the use of cheaper materials as a cost cutting measures can and will lead to long-term issues that become apparent only after the car has been in use for several years outside the warranty period.
Increased Maintenance and Diagnostics Time
One of the most significant consequences of these advanced features is the increased diagnostics time required to trouble shoot and diagnose electrical faults. The issue is that modern cars are highly complex with intricate electrical systems with menu computers in constant communication with each other with interictally designed proprietary software that can be challenging to troubleshoot. Simple issues that once took minutes to diagnose and repair can now take hours and in some cases, days. In addition to that now there are new issues with systems that did not previously exist requiring specialized diagnostic equipment and know how. This not only increases the cost of maintenance but also extends the time the vehicle is out of service.
The Changing Role of Automotive Technicians
The role of the automotive technician has evolved dramatically due to these technological advancements. Today's mechanics need to be well-versed in electronics, software and computer systems, in addition to traditional mechanical skills. However, not all mechanics are equally equipped to handle these complex systems. It is becoming more and more challenging to acquire the expensive diagnostic equipment as well as finding technicians with the knowledge and experience in advanced diagnostics. Thus, many vehicle repair facilities simply lack the specialized tools and training required to diagnose and repair electrical faults, making the long-term ownership experience predictably more problematic.
Short-Term vs. Long-Term Ownership
For buyers planning to keep a new car for a short period, these issues may not be a significant concern. The initial warranty period typically covers most of the advanced features and any issue that arise can be addressed by the manufacturer through the new car warranty. However, for owners planning to keep a vehicle past the manufacturer's warranty period, these concerns become more pressing. The risk of facing hefty repair bills and extended downtime increases significantly as the car ages.
Limiting the Risk of Hefty Repair Bills
If you are looking to limit the risk of being stuck with hefty repair bills and hassles, there are several steps you can take:
- Research the Make and Model: Keep in mind not all cars are made the same. Before purchasing a new vehicle, thoroughly research the make and model you are interested in purchasing. Some vehicles are more prone to electrical gremlins than others. Look for reviews, consumer reports, and forums to get insights from other owners who have experienced long-term ownership.
- Stay Up-to-Date with Maintenance: Always follow the manufacturer's recommended service intervals and mileage guidelines. Regular maintenance can help identify and address issues before they become major problems. Never exceed the service intervals, as this can lead to more significant and costly repairs down the line.
- Choose a Reliable Repair Shop: If you need to take your car for maintenance or repairs, choose a shop that is well-equipped to handle modern vehicles. Look for technicians who are certified and have experience with the specific make and model of your car.
By being proactive and informed, you can enjoy the benefits of advanced automotive technology while minimizing the potential downsides. Whether you are a short-term or long-term owner, taking these steps can help ensure a smoother and more cost-effective ownership experience.
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